Which One of These Is a Finding of Ritter's Study

question 30

Multiple Choice

Which one of these is a finding of Ritter's study of initial public offerings (IPOs) ?

• A)Firms with either IPOs or SEPs tend to outperform their control groups for the 5-year period following the issue of the new securities.
• B)IPOs are generally incorrectly priced at issuance because over the next 5 years the IPO firm's abnormal returns exceeded 6 percent on average.
• C)The annual returns for IPO firms during the 5-year period following an IPO are about 2 percent lower than their control group.
• D)Comparable IPO and non-IPO firms had similar returns for the 5-year period following an IPO.
• E)IPO firms tend to lose 10 percent or more of their market value in the 2 years following their IPO.

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Definitions:

Women

Typically refers to adult human females, but is also used in broader contexts to discuss issues related to gender, rights, and societal roles.

Cultural Imperialism

The practice of promoting and imposing a culture, usually of a more dominant nation, over a less powerful society, often erasing the latter's customs and values.

Culture of Silence

A social condition where discussing certain topics is taboo, discouraged, or suppressed, leading to lack of dialogue or awareness on important issues.

Dominant Group

A social group that possesses the highest authority, greatest privileges, and substantial influence within a society, often setting norms and standards.